Acquiring a property within Bangkok’s central business district can be quite expensive, yet the demand for income-generating properties remains high, according to property consulting firm CB Richard Ellis (CBRE).
A recent report by the Bangkok Post highlighted that numerous investors are buying income-generating properties in Bangkok’s urban areas, spanning from Sathorn to Phetchaburi Road.
An affiliate of The Pioneer Global Group purchased the Sofitel Silom hotel, and the same associate, holding a 49.5% stake in the Pullman Pattaya Aisawan Resort, acquired the 469-room hotel for THB2.01 billion (US$66.3 million).
Eilidh Callum, a senior economist at CB Richard Ellis, stated that strategically positioned locations in Bangkok are highly sought after. This year, a prominent real estate agency bought a three-rai site on Sathorn Road from the French government.
CB Richard Ellis Thailand asserts that, besides income-generating assets, strategically situated locations also experience significant demand.
The Boon Rawd Brewery Company LTD, responsible for the Singha Corporation, procured a nine-rai former Japanese Embassy site on New Phetchaburi Road, with plans to develop it into a mixed-use project.
Although commercial real estate sales in Asia dropped by 52% in this year’s second quarter due to factors such as Japan’s earthquake and tsunami and the deteriorating US economy, the market in Pacific Asian countries like Thailand experienced a strong rebound after a slow beginning to the year.